Adams Co Loan Agreement for DICWMEMORANDUM
TO:
FROM:
SUBJECT:
September 30, 2003
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
Resolution Fixing Date for Public Hearing on Proposal to Authorize a Loan
Agreement and Issuance of General Obligation Capital Loan Notes to
Support Adams Company Project
Economic Development Director Bill Baum recommends City Council approval of the
issuance of not to exceed $500,000 in General Obligation Capital Loan Notes to support
the Adams Company expansion project at the Dubuque Industrial Center West, and
setting a public hearing for October 20, 2003.
As has been the understanding throughout these negotiations, this is not a typical
Economic Development Grant project. Usually the City requires the Company execute
a Minimum Assessment Agreement and the City pledges only the taxes generated from
the new value of the project. There is no City guarantee involved. In this case, there
was no Minimum Assessment Agreement required because of the City's desire to work
with the Company on this property acquisition and relocation from the Port of Dubuque.
In effect, the City becomes the guarantor of the TIF debt, backed by the property taxes
paid by the property owner. This process is subject to a reverse referendum.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
William Baum, Economic Development Director
CITY OF DUBUQUE, IOWA
MEMORANDUM
September 30, 2003
TO:
FROM:
SUBJECT:
Michael Van Milligen, City Manager
Bill Baum, Economic Development Director
Resolution Fixing Date for Public Hearing on proposal to authorize a
loan agreement and issuance of General Obligation Capital Loan
Notes to Support Adams Company project
INTRODUCTION
This memorandum presents for City Council adoption a resolution fixing the date for a
public hearing on the issuance of not to exceed $500,000 in General Obligation Capital
Loan Notes to support the Adams Company expansion project at the Dubuque
Industrial Center West. The resolution sets the date of public hearing for October 20,
2003.
DISCUSSION
On May 19, 2003, the City Council approved a Development Agreement with the
Adams Company. That Agreement set the terms for the acquisition of the Adams
Company property in the Port of Dubuque and the Company's purchase and
development of property in the Dubuque Industrial Center West. The Agreement
stipulates the City will provide an Economic Development Grant to the Company in an
amount estimated at $393,000, or the difference between the City's purchase price of
the Company facility ($2,407,500) and the cost of the Company's new facility
(estimated to be $2,800,000). The City's intention is to use the Tax Increment revenues
from the Adams Company project, and other Tax Increment revenues in the Urban
Renewal Economic Development District to retire debt on the General Obligation
Capital Loan Note, which is being used as the tool to provide the Economic
Development Grant to the Company.
This is not a typical Economic Development Grant process. Usually the City requires
the Company execute a Minimum Assessment Agreement, and the City pledges only
the taxes generated from the new value of the project. There is no City Guarantee
involved. No Minimum Assessment Agreement was required because of the City's
desire to work with the Company on this relocation from the Port of Dubuque. In effect,
the City becomes the guarantor of this debt, backed by the new property taxes paid by
the property owner. This process is subject to reverse a referendum.
The amount authorized is more than the estimated amount needed, but we will not
know the final amount until the construction is near completion. Additionally, our total
payment to the Adams Company for the pumhase of Company property, relocafion
payments, and this Economic Development Grant is capped at $3,500,000 according to
the Agreement.
The City must hold a public hearing whenever it agrees to carry out an Urban Renewal
Project and issues debt for this purpose. The attached instructions from our bond
attomey, Bill Noth of the Ahlers Law firm includes the proceedings and a resolution
setting the public hearing for this proposal.
RECOMMENDATION
I recommend that the City Council adopt the attached resolution fixing the date for a
public hearing on the issuance of not to exceed $500,000 in General Obligation Capital
Loan Notes to support the Adams Company project at the Dubuque Industrial Center
West. The public hearing to approve the issuance will be October 20, 2003.
ACTION STEP
The action step for the City Council is to review the enclosures, and adopt the attached
resolution.
Attachment
F:\USERS\WBaum~EDA APPLICATION FOR ADAMS COMPANY~Set date for hearing on the ED grant,doc
AHLERS COONEY, P.C.
WILLIAM J. NOTH
WNOTH@AHLERSLAW.COM
ATTORNEYS AT LAW
100 COURT AVENUE" SUITE 6ao
DES MOINES, IOWA 50309-2231
PHONE $15-2~-7611
FAX: 515-2A3-2149
WWW.AHLERSLAW.COM
Direct Dial:
(515)246-0332
September 26, 2003
Mr. Ken TeKippe
Finance Officer
City of Dubuque
50 West 13th Street
Dubuque, Iowa 52001-4864
RE: Not to exceed $500,000 General Obligation Capital Loan Notes
(Grant to Adams Company)
Dear Mr. TeKippe:
We have now prepared and are enclosing herewith suggested proceedings to be
acted upon by the Council in fixing the date of a meeting on the proposition to enter into a
loan agreement and issue the above mentioned Notes and ordering publication of a notice
of hearing consistent with the provisions of Code Sections 384.24 and 384.24A.
Notice of this meeting must be published at least once in a legal newspaper,
printed wholly in the English language, published at least once weekly, and having
general circulation in the City. The date of publication is to be not less than ten clear days
before the date of said public meeting on the issuance of the Notes. In computing time,
the date of publication should be excluded. If the last day falls on Sunday, the whole of
the following Monday should be excluded.
At any time before the date of the hearing, a petition may be filed with the Clerk
requesting that the issuance of the Notes for this purpose be submitted to an election. To
qualify, a petition must be signed by eligible electors equal to at least ten percent of the
number who voted at the last regular municipal election (but not less than ten persons).
September 26, 2003
page 2
At the time of hearing the Council shall receive oral or written objections from any
resident or property owner to the proposed action to enter into a loan agreement and issue
the Notes. After all objections have been received and considered, the Council is
required, at that meeting or at any adjourmuent thereof, to take additional action for the
authorization of a loan agreement and the issuance of the Notes or to abandon the
proposal.
The Council is required by statute to adopt the resolution instituting proceedings to
enter into a loan agreement and issue the Notes at the hearing -- or an adjournment
thereof.
Also enclosed is an extra copy of the proceedings to be filled in as the original and
certified back to this office, together with publisher's affidavit of publication of notice of
hearing. We are also enclosing an extra copy of the notice of hearing to be delivered to
the newspaper for publication purposes. A certificate to attest the proceedings is also
enclosed.
We will prepare and forward to you in the near future suggested proceedings to be
acted upon on the date of hearing. If you have any questions pertaining to the enclosed
proceedings, please do not hesitate to call.
Yours very truly,
William J. Noth
WJN:dc
encl.
cc: Barry Lindahl
Bill Baum
DCORNELL\386053\l \I 0422043
IVEtlVSPAPER,8 COPy
NOTICE OF MEETING OF THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA, ON THE MATTER OF THE
PROPOSED AUTHORIZATION OF A LOAN
AGREEMENT AND THE ISSUANCE OF NOT TO
EXCEED $500,000 GENERAL OBLIGATION CAPITAL
LOAN NOTES (FOR AN ESSENTIAL CORPORATE
PURPOSE) AND THE PUBLIC HEARING ON THE
AUTHORIZATION AND ISSUANCE THEREOF
PUBLIC NOTICE is hereby given that the Council of the City of Dubuque, Iowa,
will hold a public heating on the day of ,2003, at
o'clock __.M., in the Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa, at
which meeting the Council proposes to take additional action for the authorization of a
Loan Agreement and the issuance of not to exceed $500,000General Obligation Capital
Loan Notes for an essential corporate purpose of the City, in order to pay costs of aiding
in the planning,~ undertaking and carrying out of urban renewal project activities under the
authority of Chapter 403 of the Iowa Code and the Amended and Restated Urban
Renewal Plan for the Dubuque Industrial Center Economic Development District,
including those costs associated with the funding of an economic development grant to
the Adams Company under the Development Agreement dated May 19, 2003 between the
City and said developer: Principal and interest on the proposed Loan Agreement will be
payable fi:om the Debt Service Fund, subject to abatement from other available revenue
SOUrCes.
At any time before the date of said meeting, a petition asking that the question of
entering into a loan agreement and issuing such Notes be submitted to the legal voters of
the City, may be filed with the Clerk of the City in the manner provided by Section 362.4
of the City Code of Iowa pursuant to Section 384.24(3)(q) of the City Code of Iowa.
At the above meeting the Council shall receive oral or written objections from any
resident or property owner of the City, to the above action. After all objections have been
received and considered, the Council will at this meeting or at any adjournment thereof,
take additional action for the authorization of a Loan Agreement and the issuance of
Notes to evidence the obligation of the City thereunder or will abandon the proposal.
This Notice is given by order of the Council of Dubuque, Iowa, as provided by
Sections 384.24(3)(q), 384.24A and 384.25 of the City Code of Iowa, as amended.
-4-
Dated this
day of
.,2003.
City Clerk of Dubuque, Iowa
(End of Notice)
-5-
(This Notice to be posted)
NOTICE AND CALL OF PUBLIC MEETING
Governmental Body:
Date of Meeting:
Time of Meeting:
Place of Meeting:
The City'Council of Dubuque, Iowa.
,2003.
o'clock _.M.
Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa.
PUBLIC NOTICE IS HEREBY GIVEN that the above mentioned governmental
body will meet at the date, time and place above set out. The tentative agenda for said
meeting is as follows:
Not to exceed $500,000 General Obligation Capital Loan Notes.
Resolution fixing date for a meeting on the proposition to authorize a
Loan Agreement and the issuance of Notes to evidence the
obligations of the City thereunder.
Such additional matters as are set forth on the additionalpage(s) attached hereto.
(number)
This notice is g/yen at the direction of the Mayor pursuant to Chapter 21, Code of
Iowa, and the local roles of said governmental body.
City Clerk, Dubuque, Iowa
,2003
The City Council of Dubuque, Iowa, met in
Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa, at
the above date. There were present Mayor
the following named Council Members:
session, in the
o'clock __.M., on
, in the chair, and
Absent:
-1-
(This Notice to be posted)
NOTICE AND CALL OF PUBLIC MEETING
Governmental Body:
Date of Meeting:
Time of Meeting:
Place of Meeting:
The City 'Council of Dubuque, Iowa.
October 6 ,2003.
6:30 o'clock ~.M.
Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa.
PUBLIC NOTICE IS HEREBY GIVEN that the above mentioned governmental
body will meet at the date, time and place above set out. The tentative agenda for said
meeting is as follows:
Not to exceed $500,000 General Obligation Capital Loan Notes.
Resolution fixing date for a meeting On the proposition to authorize a
Loan Agreement and the issuance of Notes to evidence the
obligations of the City thereunder.
Such additional matters as are set forth on the additional /'~ page(s) attached hereto.
(number)
This notice is given at the direction of the Mayor pursuant to Chapter 21, Code of
Iowa, and the local rules of said governmental body.
~ity Clerk, Dubuque, Iowa
October 7
.,2003
The City Council of Dubuque, Iowa, met in Reqular
Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa, at
the above date. There were present Mayor Terrance M. Duggan
the following named Council Members:
6:30
session, in the
o'clock P.M., on
, in the chair, and
Roy Buol, Patriciai Cline, Joyce Connors,
John Markham, Ann Michalski, Dan Nicholson
Absent: None
-1-
Council Member Patricia A. Cl_ine introduced the following
Resolution entitled "RESOLUTION FIXING DATE FOR A MEETING ON THE
AUTHORIZATION OF A LOAN AGREEMENT AND THE ISSUANCE OF NOT TO
EXCEED $500,000 GENERAL OBLIGATION CAPITAL LOAN NOTES OF
DUBUQUE, IOWA, AND PROVIDING FOR PUBLICATION OF NOTICE
THEREOF", and moved that the same be adopted. Council Member
Joyce Connors seconded the motion to adopt. The roll was called and the
vote was,
A~Z~ES: Buol, Cline, Connors, Duggan
Markham, Michalski, Nicholson
NAYS: None
Whereupon, the Mayor declared the resolution duly adopted as follows:
RESOLUIION # 374-03
RESOLUTION FIXING DATE FOR A MEETING ON THE
AUTHORIZATION OF A LOAN AGREEMENT AND THE
ISSUANCE OF NOT TO EXCEED $500,000 GENERAL
OBLIGATION CAPITAL LOAN NOTES OF DUBUQUE,
IOWA, AND PROVIDING FOR PUBLICATION OF
NOTICE THEREOF
WHEREAS, it is deemed necessary and advisable that the City of Dubuque, Iowa,
should provide for the authorization of a Loan Agreement and the issuance of General
Obligation Capital Loan Notes to the amount of not to exceed $500,000, as authorized by
Sections 384.24, 384.24A and 384.25, Code of Iowa, as amended, for the purpose of
provid/ng funds to pay costs of carrying out an essential corporate purpose project as
hereinafter described; and
WHEREAS, the Loan Agreement and Notes shall be payable from the Debt
Service Fund but will be subject to abatement from other available revenue sources; and
WHE~AS, before a Loan Agreement may be authorized and General Obligation
Capital Loan Notes issued to evidence the obligation of the City thereunder, it is
necessary to comply with the provisions of the City Code of Iowa, as amended, and to
publish a notice of the proposal and of the time and place of the meeting at which the
-2-
Council proposes to take action for the authorization of the Loan Agreement and Notes
and to receive oral and/or written objections from any resident or property owner of the
City to such action and the right to petition for an election.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA:
Section 1. That this Council meet in the Auditorium, Carnegie-Stout Public
Library, Dubuque, Iowa, at 6:30 o'clock__P.M., on the 20th day of
October ,2003, for the purpose of taking action on the matter of the
authorization of a Loan Agreement and the issuance of not to exceed $500,000 General
Obligation Capital Loan Notes to evidence the obligations of the City thereunder for an
essential corporate purpose of the City, the proceeds of which will be used to pay costs of
aiding in the planning, undertaking and carrying out of urban renewal project activities
under the authority of Chapter 403 of the Iowa Code and the Amended and Restated
Urban Renewal Plan for the Dubuque Industrial Center Economic Development District,
including those costs associated with the funding of an economic development grant to
the Adams Company under the Development Agreement dated May 19, 2003 between the
City and said developer.
Section 2. That the Clerk is hereby directed to cause at least one publication to be
made of a notice of said meeting, in a legal newspaper, printed wholly in the English
language, published at least once weekly, and having general circulation in said City, said
publication to be not less than ten clear days before the date of said public meeting on the
issuance of said Notes.
Section 3. The notice of the proposed action shall be in substantially the following
form:
-3-
NOTICE OF MEETING OF THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA, ON THE MATTER OF THE
PROPOSED AUTHORIZATION OF A LOAN
AGREEMENT AND THE ISSUANCE OF NOT TO
EXCEED $500,000 GENERAL OBLIGATION CAPITAL
LOAN NOTES (FOR AN ESSENTIAL CORPORATE
PURPOSE) AND THE PUBLIC HEARING ON THE
AUTHORIZATION AND ISSUANCE THEREOF
PUBLIC NOTICE is hereby given that the Cotmcil of the City of Dubuque, Iowa,
will hold a public hearing on the 20th dayof 0c~:ober ,2003, at 6:30
o'clock P.M., in the Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa, at
which meeting the Council proposes to take additional action for the authorization of a
Loan Agreement and the issuance of not to exceed $500,000. General Obligation Capital
Loan Notes for an essential corporate purpose of the City, in order to pay costs of aiding
in the planning; undertaking and carrying out of urban renewal project activities under the
authority of Chapter 403 of the Iowa Code and the Amended and Restated Urban
Renewal Plan for the Dubuque Industrial Center Economic Development District,
including those costs associated with the funding of an economic developmen~ grant to
the Adams Company under the Development Agreement dated May 19, 2003 between the
City and said developer: Principal and interest on the proposed Loan Agreement will be
payable from the Debt Service Fund, subject to abatement from other available revenue
sources.
At any time before the date of said meeting, a petition asking that the question of
entering into a loan agreement and issuing such Notes be submitted to the legal voters of
the City, may be filed with the Clerk of the City in the manner provided by Section 362.4
of the City Code of Iowa pursuant to Section 384.24(3)(q) of the City Code of Iowa.
At the above meeting the Council shall receive oral or written objections from any
resident or property owner of the City, to the above action. After all objections have been
received and considered, the Council will at this meeting or at any adjournment thereof,
take additional action for the authorization of a Loan Agreement and the issuance of
Notes to evidence the obligation of the City thereunder or will abandon the proposal.
This Notice is given by order of the Council of Dubuque, Iowa, as provided by
Sections 384.24(3)(q), 384.24A and 384.25 of the City Code of Iowa, as amended.
Dated this
7th
day of
October ,2003.
Jeanne F. Schneider, City Clerk
Clerk of Dubuque, Iowa
(End of Notice)
-5-
PASSED AND APPROVED this 6th day of October, 2003.
Terrance M. Duggan, Mayor
ATTEST:
Jeanne F. Schneider, City Clerk
,2003.
-6-
CIG-3
9/91
CERTIFICATE
STATE OF IOWA
COUNTY OF DUBUQUE
)
) ss
)
I, the undersigned City Clerk of Dubuque, Iowa, do hereby certify that attached is
a true and complete copy of the portion of the corporate records of said Municipality
showing proceedings of the Council, and the same is a true and complete copy of the
action taken by said Council with respect to said matter at the meeting held on the date
indicated in the attachment, which proceedings remain in full force and effect, and have
not been amended or rescinded in any way; that meeting and all action thereat was duly
and publicly held in accordance with a notice of meeting and tentative agenda, a copy of
which was timely served on each member of the Council and posted on a bulletin board
or other prominent place easily accessible to the public and clearly designated for that
purpose at the principal office of the Council (a copy of the face sheet of said agenda
being attached hereto) pursuant to the local roles of the Council and the provisions of
Chapter 21, Code of Iowa, upon reasonable advance notice to the public and media at
least twenty-four hours prior to the commencement of the meeting as required by said law
and with members of the public present in attendance; I further certify that the individuals
named therein were on the date thereof duly and lawfully possessed of their respective
city offices as indicated therein, that no Council vacancy existed except as may be stated
in said proceedings, and that no controversy or litigation is pending, prayed or threatened
involving the incorporation, organization, existence or boundaries of the City or the right
of the individuals named therein as officers to their respective positions.
WlTNES. S my hand and the seal of said Municipality hereto affixed this ~/-4~
day of ~'~/~,~f&/ ,2003.
~2(ty Clerk, Dubuque, Io~va
SEAL
DCORN ELL\386049\ 1 \ 10422025
CIG-18
STATE OF IOWA )
) ss
COUNTY OF DUBUQUE )
I, the undersigned, do hereby certify that I am now and was at the times hereinafter
mentioned, the duly qualified and acting Clerk of the City of Dubuque, in the County of
Dubuque, State of Iowa, and that as such Clerk and by full authority from the Council of
said City, I have caused a
NOTICE OF MEETING OF THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA, ON THE MATTER OF THE
PROPOSED AUTHORIZATION OF A LOAN
AGREEMENT AND THE ISSUANCE OF NOT TO
EXCEED $500,000 GENERAL OBLIGATION CAPITAL
LOAN NOTES (FOR AN ESSENTIAL CORPORATE
PURPOSE) AND THE PUBLIC HEARING ON THE
AUTHORIZATION AND ISSUANCE THEREOF
of which the clipping annexed to the publisher's affidavit hereto attached is in words and
figures a correct and complete copy, to be published as required by law in the Telegraph
Herald, a legal newspaper published at least once weekly, printed wholly in the English
language, published regularly and mailed through the post office of current entry for more
than two years and which has had for more than two years a bona fide paid circulation
recognized by the postal laws of the United States, and has a general circulation in the
City, and that said Notice was published in said newspaper in all of the issues thereof
published and circulated on the following date:
,2003
WITNESS my officialsignature at Dubuque, Iowa, this
,2003.
day of
(SEAL)
City Clerk
DCORNELLk386051 \1 \10422043